I have a retail client in Green Bay that I audit every 2 years. First audit found $22,000 in errors with Wisconsin Public Service. Second audit found only $4,500 because most issues were already corrected from the first round. Client is asking for a third audit at a lower contingency rate since 'there's probably less to find now.' Is it reasonable to lower the rate for repeat engagements?
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Charging for repeat audits of the same client — same rate or discount?
There's logic in a modest reduction for repeat clients because your setup time is shorter — you already know the accounts, the rate schedules, and the client's operations. But the expertise required is the same. A drop from 40% to 35% for a returning client is reasonable and rewards loyalty. I wouldn't go lower than that. Also consider that rates, tariffs, and riders change over time, so a repeat audit might find entirely new issues that didn't exist during the previous review. The value of a fresh set of eyes on changed tariffs is worth the professional rate.
Offered 35% for the third audit. Client accepted. Found a new rider that Wisconsin Public Service introduced in 2015 that the client qualified for — $3,800/year in demand charge savings that didn't exist during the previous audit. Randy was right that tariff changes create new opportunities on repeat engagements.